Divisional Structure Advantages And Disadvantages
In a divisional structure, divisions are organized geographically or by product line or marketing area and each division includes people from each area of the business. For example, the European division of a company may handle all of the firms' business with Europe and include its own accountant teams, sales teams, research and development teams, and human resources teams – all of whom report to the division head. This allows the company to respond quickly to customer needs and helps more employees develop managerial skills. The disadvantage of this structure is that there can be a lot of redundant effort and competition between divisions.